Best Rates Fairfax Debt 'bb+'; Outlook Negative

A.M. Best Co. has assigned a debt rating of "bb+" to Fairfax Financial Holdings Limited's 7.75% senior unsecured notes due 2012 issued as part of its debt exchange offer. The outlook for all debt ratings remains negative. Fairfax has exchanged a portion of the company's existing $275 million of 7.38% notes due 2006, $170 million of 6.88% notes due 2008 and wholly owned TIG Holdings, Inc. $97.7 million 8.125% notes due 2005 for a combination of cash and a specific amount of the new notes. The new notes have terms and covenants substantially similar to the existing securities. Fairfax has...